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By Tarnell Brown
Those Who's are at it again. Pursuant to the Supreme Court’s decision in Collins v. Yellen, which ruled that the requirement that the head of the Executive agency the Federal Housing Finance Agency (FHFA) can only be removed by the President for cause represents a violation of separation of powers, the Biden Administration has moved to terminate Director Mark Calabria. FHFA was the agency created by Congress to oversee Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac in the...
In my previous post, we began a discussion of the War on Drugs™ by highlighting some of the failures of its close historical precedent, Prohibition. Not only are there parallels between the two that are quite instructive; in a sense, Prohibition begat the modern drug...
Your essay is freighted with sound reasoning. I suspect the antecedents to the sub-prime debacle and resultant TBTF are grounded in moral hazard and regulatory capture. It seems the lenders and GSE's are incentivized to take unreasonable risk because, by observing previous government bailouts, they believe, losses will be absorbed by taxpayers and wins will accrue to the lenders and GSE's.
David Seltzer , July 28, 9:59 am.